South Korea’s National Tax Service seized crypto assets during recent enforcement actions against 124 high-value tax evaders, but now, a large chunk of that crypto cash has been lost. The operation originally resulted in the confiscation of crypto holdings worth about 8.1 billion won, or roughly $5.6 million. However, officials later issued a press release to showcase these efforts in recovering delinquent taxes, and the release included photographs of Ledger hardware wallets taken into custody along with handwritten notes that displayed the wallet seed phrases.

Those images attached to the press release turned out to be the critical error. High-resolution photos clearly showed the mnemonic recovery phrases, which…